Air J revenue down 27% in '09

Wednesday, April 14, 2010

AIR Jamaica's annual revenue dipped 26.7 per cent to US$257 million ($23 billion) in 2009 due to a reduction in its fleet which impacted positively on its efficiency, according to just-published data.

"The decline was reflective of lower revenues intake from all revenue categories with revenues from passengers down by US$92 million to US$207 million," stated the Economic and Social Survey Jamaica 2009 (ESSJ) released Monday by the Planning Institute of Jamaica.

The survey did not post profit or loss data but the company has had an accumulated debt of some US$1 billion ($89.5 billion). Air Jamaica's revenue decline was expected as it cut its fleet from 14 to nine whilst slashing six routes in 2009. The fleet reduction was a cost-cutting measure in preparation for acquisition by Trinidadian carrier Caribbean Airlines by month end.

A key indicator, its passenger load factor or filled seats increased to 74 per cent versus 68 per cent in 2008. This was the airline's highest passenger load factor in at least five years and meant that virtually three of every four seats were filled. The airline's operated 1.35 billion available seats miles in the year which was 34.3 per cent lower than 2008, its revenue passenger miles fell by 27.6 per cent to 1.3 billion whilst revenue passengers declined by 23.9 per cent to 1.13 million persons.

"The reduced numbers reflect the continued negative impact of the global recession," stated the survey.

The global travel downturn in 2009 along with the reduction in Air Jamaica and Spirit Airlines flights affected aircraft movement at the island's international airports which fell by 9.4 per cent to 59,696. The survey stated that the flight reductions especially from Air Jamaica outweighed increased flights associated with Jet Blue, Air Italy and Air Europe. At the same time air cargo movement was down 26.1 per cent at Norman Manley International Airport (NMIA) and Sangster International Airport (SIA). Total passenger movement at the islands airports fell by 5.1 per cent below 5.11 million in 2008. This comprised of arrivals which dipped 3.7 per cent to 2.34 million, departures which dipped 3.8 per cent dipped 2.39 million and intransits which dipped 40.5 per cent to 109,577 according to the ESSJ. Total passenger traffic was down 6.9 per cent and 4.2 per cent at NMIA and SIA respectively.

In 2009 Air Jamaica was no longer ranked amongst the top-10 most complained about foreign airlines operating in the US following the drop in ranking from seven to 11 according to recent data from the US Department of Transportation (DOT). The reduced complaints coincided with the airline's fleet reduction from 14 aircraft in 2008 -- including six A321 and eight A320's -- to nine in 2009, to six up to April 2010 including one A319, four A320's and one A32.

Do you feel buying into Facebook now is a good investment for the long-run?
	Yes
	No

View Results
Results published weekly in Sunday Finance

Username:
Password:

Teen killed for laughing at man who fell from bicycle

Air J revenue down 27% in '09